Funding to support the NHS, reduce carbon emissions and help tackle poverty
Almost £50 billion was spent by the Scottish Government last year on public services to help tackle child poverty, reduce carbon emissions, support the NHS and secure pay deals, according to newly published official figures.
The Provisional Outturn, which compares actual spending with the funding commitments set out in the Budget, shows that the Scottish Government spent £49.3 billion in the 2023-24 financial year. There was £292 million remaining – representing 0.6% of the Scottish Government’s total budget – all of which has been carried over through the Scotland Reserve to be directed towards priority areas in 2024-25.
In 2023-24 the Scottish Government:
spent nearly £5.2 billion on social security benefits. This includes £429 million on Scottish Child Payment, alongside funding to introduce Carer Support Payment in pilot areas, ahead of full roll-out in 2024, and to widen eligibility for Best Start Foods
invested more than £19 billion in health and social care, supporting recovery and reform to secure sustainable public services, while delivering a pay uplift for NHS staff
provided nearly £220 million to the Heat in Buildings Programme to help deliver greener and more energy efficient homes
continued providing Just Transition Fund grant funding, including £16.8 million for projects in the North-east and Moray regions, in addition to £3 million to help vulnerable global communities address loss and damage brought on by climate change
invested almost £422 million on bus services and concessionary fares, providing up to 2.3 million people in Scotland with access to free bus travel.
Public Finance Minister Ivan McKee said: “These figures show once again how this government is prudently and competently managing the public finances while delivering funding for the things that matter to people across Scotland, not least the NHS and action to tackle child poverty.
“The Scottish Government has consistently balanced its budgets each and every year. This represented a significant challenge last year, as the continued impact of persistently high inflation, pressure on public sector pay, backlogs as a result of the Covid pandemic and the war in Ukraine combined to place pressure on the public finances.
“We are not allowed to overspend, so must leave ourselves with the headroom to manage any unexpected shocks or issues. The remaining funding has been allocated in full in 2024-25, allowing us to implement measures at the most optimal time rather than being constrained to a single financial year.”
A fund to trial new ways of combating child poverty has opened for a second round of applications.
The Child Poverty Practice Accelerator Fund (CPAF) will provide up to £80,000 per grant towards local projects that test and evaluate new approaches which target at least one of the three drivers of child poverty reduction: improving income from employment, supporting people with the cost of living, and increasing awareness and uptake of social security benefits.
Applications can be submitted by local authorities and health boards, who may choose to work with other groups and organisations in the community.
Eradicating child poverty is @ScotGov’s top priority, and our policies are estimated to keep 100,000 children out of relative poverty this year.
Ahead of a Scottish Parliament debate on eradicating child poverty, Social Justice Secretary Shirley-Anne Somerville said: “Eradicating child poverty is a central mission for the Scottish Government and we must find new and innovative ways to achieve this.
“Measures such as the Scottish Child Payment are estimated to keep 100,000 children in Scotland out of relative poverty this year, but we are determined to go further. The Child Poverty Practice Accelerator Fund will support projects that target the root causes of child poverty and create lasting change in our communities.
“Local authorities and health boards are already undertaking transformative work to tackle child poverty and this fund will support them to go further and share best practice, to help make child poverty a thing of the past.”
Support to help families on low incomes with childcare
Football clubs and trusts across Scotland will receive additional funding to boost efforts to eradicate child poverty.
In the capital, four clubs – Spartans Community Foundation, Big Hearts, Hibernian Community Foundation and Edinburgh South Community FC – will all receive substantial government support.
The Scottish Government will double its investment in the Extra Time Programme, a joint initiative with the Scottish Football Association, from £2 million to £4 million for this financial year.
The funding will support more free before and after school clubs, and holiday clubs for children from families on low incomes.
By giving around a projected 3,000 children each week free access to sport and other activities which wrap around the school day, the funding will help more parents to enter or sustain employment or training.
First Minister John Swinney made the announcement during a visit to Pollok United’s after-school activity club where he heard about the contribution innovative childcare options are making to the eradication of child poverty.
Mr Swinney said: “We know funding from the Extra Time Programme is enabling football clubs and trusts to provide really valuable childcare options, particularly for families from low-income households who are most at risk of living in poverty.
“By removing barriers to affordable and accessible childcare, we will contribute to the eradication of child poverty. I will shortly set out further views on this crucial issue in Parliament.
“At the Nethercraigs Sports Facility, I saw children enjoying a healthy snack and fun activities including arts and crafts and sports. Parents have told Pollok United the service helps with food and childcare costs, relieving pressure on stretched family budgets.
“Like many others, I will be supporting Scotland at Euro 2024 when it gets underway in Germany this week. But the Extra Time Programme is a reminder that local football clubs are supporting communities here at home – providing valuable services beyond matchday. They understand the value of that support for local families, and they are well placed to provide crucial facilities and services.”
SFA Chief Executive Ian Maxwell said: “We are delighted to announce this additional funding in conjunction with the Scottish Government to extend the Extra Time Programme.
“The benefits have been clear to see and it’s vital that we continue to offer support for families to allow children and young people to access as much physical activity as possible.
“As well as the thousands of children who will engage with the game, clubs are often the heartbeat of their local communities and it’s just as important that we offer more opportunities for parents and carers too. This programme is a great example of how impactful the power of football can be.”
A Spartans spokesperson said: “We are delighted to be part of this delivery in North Edinburgh, supporting families in our community and providing after school and holiday clubs for young people.”
Pollok United Community Engagement and Funding Lead Deborah McCabe said: “Pollok United is delighted to be involved in this innovative Scottish Government and SFA collaboration.
“It has enabled us to provide a service that not only supports families during this cost of living crisis by offering free childcare provision, it also demonstrates that grassroots football organisations are well placed to deliver successful wider socio-economic support within communities, resulting in meaningful outcomes for those involved.”
EXTRA TIME funding:
Club
Region
Project Budget
Aberdeen FC Community Trust
North
£108,600.00
Broxburn United Sports Club
South East
£149,700.00
Celtic FC Foundation
West
£84,608.00
Dundee United Community Trust
East
£89,130.00
Dundee United Sports Club 1984
East
£143,136.20
Dundee West Community Trust
East
£104,010.00
Edinburgh South Community FC
South East
£135,000.00
Falkirk Community Football Foundation
Central
£149,884.34
Glenrothes Strollers Community FC
East
£134,335.00
Heart of Midlothian Football Club
South East
£158,250.60
Hibernian Community Foundation Ltd
South East
£149,844.00
Inverness CT Community Development
North
£250,772.00
Montrose Community Trust
East
£100,185.00
Morton in the Community
West
£82,946.25
Motherwell FC Community Trust
Central
£120,066.50
North Kelvin Sports Development Group
West
£131,214.00
Partick Thistle Charitable Trust
West
£183,238.47
Pollok United
West
£61,610.00
Queen of the South Community Trust
South West
£112,000.00
Queens Park FC Foundation
West
£79,218.40
Rangers Charity Foundation
West
£126,289.00
Spartans Community Foundation
South East
£178,544.00
St Mirren FC Charitable Foundation
West
£151,300.00
Wasp Community Club
Central
£110,811.00
The Killie Community
South West
£53,923.45
Ayr United
South West
£226,630.00
Blantyre Soccer Academy
South West
£126,220.00
Cumnock Juniors Community Enterprise
South West
£31,000.00
Inverkeithing Hillhead Swifts / Blairgowrie and Rattray
Campaigners respond to annual Scottish child poverty reports
Child poverty campaigners respond to latest child progress reports from Scottish Government and independent Poverty and Inequality Commission.
One in four children still living in poverty, against 2030 target of less than one in ten.
“Reports are crystal clear that progress has stalled” say campaigners.
John Dickie, Director of the Child Poverty Action Group (CPAG) in Scotland, has responded to the publication of the Scottish Government’s sixth Annual Tackling Child Poverty Progress Report and the Poverty and Inequality Commission independent scrutiny report.
The annual report is a statutory requirement under the 2017 Child Poverty (Scotland) Act and sets out the progress made towards meeting legally binding child poverty targets. The Act requires Scottish Ministers to consult the Commission in preparing its report.
Mr Dickie said; “We have seen very real action on child poverty in Scotland, not least the roll out of the Scottish child payment, but today’s reports are crystal clear that progress has stalled and that the policies in place are not enough to meet statutory targets. If child poverty really is the First Minister’s number one priority, then investment decisions need to back that up.”
Responding to the Cabinet Secretary’s statement to Parliament yesterday in which she said it had “not been possible to invest in all of the actions the government would have wished“, Mr Dickie said: “The failure of the 2024/25 Scottish budget to fully fund the childcare, employment and housing actions in the government’s own plan must never be repeated. The Scottish government’s child poverty delivery plan needs to be turbocharged, not underfunded.
“All political parties need to act at every level of government to deliver the economic, tax and spending plans that will ensure every family has the resources needed to protect their children from poverty. Here in Scotland the first step needs to be an immediate real terms increase to the Scottish child payment, and a commitment to ensure it reaches £40 per week by the end of the Parliament.
“At UK level all parties must commit to scrapping the poverty producing two-child limit and to increasing child benefit by £20 per week.
“Our children deserve nothing less.”
The Child Poverty (Scotland) Act 2017 requires Scottish Ministers to ensure less than less than 10% of children are living in poverty by 2030.
The latest official statistics (for 2021 to 2023) show that 24% of children (250 000 children) were living in poverty in Scotland.
The Scottish Government is estimated to have invested almost £1.4 billion to benefit children in low income households in the last financial year.
The investment is detailed in an annual progress report which highlights key actions to tackle child poverty including:
Awarding almost £430 million to families through the Scottish Child Payment, supporting more than 329,000 children as of 31 March 2024
Widening eligibility for Best Start Foods, the benefit which helps low-income families access nutritious food, so thousands more children and pregnant women can benefit
Supporting around 4,400 children through continued work to develop a system of school age childcare and continuing to provide 1140 hours of funded childcare for all eligible children
Providing free bus travel to over 2.3 million people, with 727,000 children and young people registered as of March 2024
Delivering 6,045 affordable homes across Scotland, with two thirds for social rent, between April and December 2023 – helping an estimated 2,015 households with children into affordable housing
Ms Somerville said: “Eradicating child poverty is the First Minister’s top priority and the actions we are taking are making a difference. Modelling published in February estimates that our policies will keep 100,000 children out of relative poverty this year.
“Over the last year we have continued to provide immediate support to families through investment in the likes of our ‘game-changing’ Scottish Child Payment, and by mitigating the Benefit Cap as fully as possible within the scope of devolved powers.
“We have set out, through our Building a New Scotland series, how we would deliver differently in an independent Scotland. Only with the full economic and fiscal powers of an independent nation can we use all of the levers other governments have to tackle inequalities, and we will continue to make this case. However, this will not stop us from taking all the action we can towards our goal now.”
Following a further increase in the value from 1 April 2024, together the Scottish Government’s five family payments of Scottish Child Payment, Best Start Foods and the three Best Start Grant payments could now be worth over £10,000 by the time an eligible child turns six, and around £25,000 by the time they turn 16.
£16M funding to expand access to childcare services
First Minister John Swinney has announced £16 million for childcare services to help deliver his vision of a Scotland free from child poverty.
In a statement to Parliament, the First Minister set out the four priorities that will underpin the work of his government. He said eradicating child poverty would be his government’s single most important objective.
Over the next two years, the Scottish Government will provide additional funding to expand access to childcare services within six Early Adopter Community (EAC) projects.
The funding will allow expansion into to new communities, including in Fife and Shetland, and inform what childcare should look like for younger children. The investment will support the development of local childcare systems that are designed to meet families’ needs, with funding targeted at those who are most at risk of living in poverty.
Earlier yesterday, the First Minister visited a breakfast club at Capshard Primary School in Kirkcaldy to see the impact of innovative school age childcare services which contribute to the eradication of child poverty and grow the economy, by helping parents and carers access the childcare they need to find and sustain good jobs.
Speaking in parliament, the First Minister said: “In modern Scotland, it should not be a struggle to find fair work or to raise a family. So for me, and for my government, eradicating child poverty and boosting economic growth, go hand in hand.
“Over the next two years, we will invest £16 million to tackle poverty and help families, by expanding access to childcare services within six Early Adopter Community projects.
“This investment will support low income families to enter and sustain employment, with funding targeted at those who are most at risk of living in poverty.”
First Minister John Swinney is to set out the priorities that will underpin the work of his government today (Wednesday, 22 May), focused on a central mission to eradicate child poverty.
In a statement to Parliament, the First Minister is expected to commit the Scottish Government to eradicate child poverty and to work with business and industry to grow the economy, invest in net zero and deliver stronger public services.
The First Minister will also make clear the need for bold and collaborative action across the Parliament, focused on the priorities of people in Scotland.
Ahead of the statement, the First Minister will meet pupils at a new breakfast club in Kirkcaldy in Fife. There he will see the impact of innovative school-age childcare services in contributing to the eradication of child poverty and growing the economy – by helping parents and carers access vital childcare to help find and sustain good jobs.
The First Minister said: “Eradicating child poverty will be the single most important objective of my government – and work in other priority areas will support and drive that mission.
“I intend to build on our record of delivery. Since 2007, economic growth, per head, and productivity have been stronger in Scotland than the rest of the UK, Scotland’s core A&E units are the best performing in the UK, and measures such as our Scottish Child Payment are estimated to keep 100,000 children in Scotland out of relative poverty this year.
“I am acutely aware of the economic and fiscal realities that we face and I want to take forward measures that will help people and their families to get on in life: to enable the people of Scotland to live happier, healthier lives.
“One of the benefits of long service in politics is having witnessed the Scottish Parliament when it is functioning at its very best. That happens when parties work constructively together.
“My government will do everything in our power – working with Members from across parties – to make child poverty a thing of the past.”
controversial two-child limit on benefits a key driver, says CPAG
YESTERDAY’Sofficial poverty statistics show child poverty has reached a record high with an estimated 100,000 more children pulled into poverty last year.
The DWP’s annual Households Below Average Income shows 4.3 million children (30%) were in poverty in the year to April 2023. It shows:
100,000 more children were pulled into relative poverty (after housing costs). That means 4.3 million children (30% of all UK children) were in poverty – up from 3.6 million in 2010-11.
69% of poor children live in working families
46% of children in families with 3 or more children are in poverty, up from 36% in 2011/12.
Poor families have fallen deeper into poverty: 2.9 million children were in deep poverty (i.e. with a household income below 50% of after-housing-costs equivalised median income) 600,000 more than in 2010/11
36% of all children in poverty were in families with a youngest child aged under five
47% of children in Asian and British Asian families are in poverty, 51% of children in Black/ African/ Caribbean and Black British families, and 24% of children in white families
44% of children in lone parent families were in poverty
34% of children living in families where someone has a disability were in poverty
Alison Garnham, Chief Executive of Child Poverty Action Group and Vice-Chair of the End Child Poverty Coalition, said: “In a general election year, nothing should be more important to our political leaders than making things better for the country’s poorest kids.
“But child poverty has reached a record high, with 4.3million kids now facing cold homes and empty tummies.
“We know that change is possible but we need to see a commitment from all parties to scrap the two child limit and increase child benefits. Anything less would be a betrayal of Britain’s children.”
Liv Eren 20, who grew up in poverty, says: “As an 8-year-old I couldn’t go on the school trip, as a 12-year- old I was wearing last year’s school blazer and that feeling – that knock to your self-esteem – never really leaves you.
“People say growing up in hardship can motivate you, but what could I do aged 8 or 12?. It’s awful.”
Schools are seeing the effects of rising child poverty every day.
Tom Prestwich, Headteacher at Jubilee Primary School in Lambeth said: The levels of poverty we are seeing in school now and the numbers of children affected by it, are the worst I have seen.
“This can have a significant impact on our pupils’ ability to learn and on their overall wellbeing. Pupils who are coming to school hungry, pupils who are overtired because they are struggling to sleep in difficult home conditions, pupils who are cold or uncomfortable because of the clothes they have to wear are all at a disadvantage right from the start of their day.
“We do as much as we can to counteract this. We have breakfast clubs, give out fruit and bagels every day, give out old uniforms and support as much as we can with parents battling for improved housing but it does feel like the gap between disadvantaged and non-disadvantaged families is widening.
“This is happening at a time when school budgets are ever more stretched and our capacity to help and support families is reduced as a result.”
Simon Kidwell, head teacher at Hartford Manor Primary School in Cheshire, and president of school leaders’ union NAHT, said: “At my school even working families are accessing local food banks and seeking support with uniform and school trip expenses.
“We hear from our members how schools are increasingly finding themselves having to step in and support pupils and families, with local authority budgets stretched to breaking point.”
In addition to the rise in relative child poverty (measured as living on less than 60% of today’s median income) the DWP’s figures show an increase in the number of children in absolute poverty (measured as living on less than 60% of what the median income was in 2010).
Since absolute poverty should always reduce over time as living standards generally rise, the increase is a clear warning that not only are more children being dragged below the relative poverty line, but living standards for children are falling over time, their hardship deepening.
Commenting on the publication of the latest official figures on UK poverty, which show that the number of people living below the poverty line in working households is 1.6 million higher than in 2010, TUC General Secretary Paul Nowak said:“Hard work should pay for everyone. But millions of working families in this country are struggling to cover even the basics.
“In-work poverty has rocketed over the last 14 years.
“The Tories have presided over epidemic levels of insecure work, brutal cuts to social security and years of feeble wage growth.
“Working people deserve far better.”
Households Below Average Income statistics can be found here:
Latest Accredited Official Statistics and Official Statistics published
Covering the period until March 2023, the latest statistics show little recent change in poverty levels for children and pensioners. Poverty for working-age adults is slightly higher than in recent years, which could be driven by people becoming economically inactive as a result of the pandemic.
The four child poverty measures in the Child Poverty (Scotland) Act (relative and absolute poverty, combined low income and material deprivation, and persistent poverty) are broadly stable over the recent period. These measures are based on single-year figures which tend to fluctuate year on year, and the three-year averages provide a robust indication of trends.
While the poverty risk is much lower for children where someone in the household is in paid work compared to those in workless households, not all work pays enough to lift the household above the poverty line. Over two thirds of children in poverty live in a household with someone in paid work. This proportion has increased markedly over the past decade or so as more people move into employment.
Other key points are:
Working-age adults (21%) and pensioners (15%) are less likely to be in relative poverty after housing costs compared to children (24%).
Relative poverty has been broadly stable for all age groups. Adults under 25 are more likely to be in poverty than older adults.
Minority ethnic households are more likely to be in poverty compared to white British households. Muslim adults have higher rates of poverty compared to adults of Christian and those with no religion. Some of this difference may be explained by these households being younger.
The two full statistical publications are available here:
Poverty and Income Inequality in Scotland contains statistics on poverty, child poverty, poverty risks for various equality characteristics, household income and income inequality for Scotland. This report also includes statistics on household food security.
The data comes from the Department for Work and Pensions’ (DWP) Family Resources Survey, Households Below Average Income dataset. Comparable UK income and poverty figures are published on the same day by DWP.
Figures are presented as three-year averages of each estimate. Three-year estimates best identify trends over time. Data collected during the year between April 2020 and March 2021 are excluded from the most recent estimates as response rates were affected by the COVID-19 pandemic. As a result, estimates covering this period are for two years rather than three.
The four child poverty measures in the Child Poverty (Scotland) Act are based on single-year figures. These are available in the reference tables and in the child poverty summary.
Persistent Poverty in Scotland presents estimates of the proportion of people in Scotland who live in persistent poverty. The data comes from the Understanding Society Survey, and the latest statistics cover the period from 2018 to 2022.
These poverty statistics are used by the Scottish Government and other organisations to monitor progress in tackling poverty and child poverty, and to analyse what drives poverty and what works for tackling poverty and income inequality.
Relative poverty: A person is in relative poverty if their current household income is less than 60% of the current UK median. Increases in the proportion of people living in relative poverty indicate that the gap between the poorest and middle income households is widening.
Absolute poverty: A person is in absolute poverty if their current household income is less than 60% of the UK median in 2010/11, adjusted for inflation. Increases in the proportion of people living in absolute poverty indicate that prices are rising faster than the incomes of the poorest households.
Combined low income and material deprivation identifies the number of children in families that cannot afford basic essential goods and services because of a low income (below 70 percent of the middle household income).
Persistent poverty identifies the number of people in relative poverty for three or more out of four years. People who live in poverty for several years may be affected by it through their lifetime.
Household income is adjusted for household size.
The poverty publications present poverty figures before and after housing costs. Before housing costs figures are a basic measure of household income from earnings and benefits. After housing costs figures subtract spending on rents, mortgage interest payments and other unavoidable housing costs from this basic income.
In Scotland, poverty statistics focus mainly on poverty after housing costs. The poverty estimates in the child poverty summary refer to relative poverty after housing costs.
Modelling shows vital impact of Scottish Government policies
First Minister Humzah Yousaf has welcomed analysis which estimates 100,000 children will be kept out of relative poverty in 2024-25 as a result of Scottish Government policies.
Updated modelling of the cumulative impact of policies such as the Scottish Child Payment indicates the relative child poverty rate will be 10 percentage points lower than it would otherwise have been.
Speaking after joining a Book Bug session at Drum Brae Library Hub in Edinburgh with the Cabinet Secretary for Social Justice, Mr Yousaf highlighted estimates in the report of the impact the UK Government could have on child poverty, if it were to bring in selected welfare changes alongside the Scottish Government’s actions.
These show that removing the two-child limit and reinstating the family element in Universal Credit – worth £545 per family in 2017 – could lead to an estimated further 10,000 fewer children in Scotland living in poverty in 2024-25.
Meanwhile, introducing an Essentials Guarantee to ensure Universal Credit is always enough to meet people’s basic needs could lead to 30,000 fewer children experiencing poverty.
The First Minister said: “It is utterly unacceptable that, in 2024, children continue to live in poverty in Scotland. That is why we have very deliberately chosen to invest in our public services, and the social contract which binds the Scottish Government to the people we serve.
“From the introduction of the innovative and transformative Scottish Child Payment – described as ‘game-changing’ by frontline organisations and already improving the lives of so many children and families across Scotland in real and immediate ways – to investing £1 billion to tackle the poverty-related attainment gap, continuing delivery of the Whole Family Wellbeing programme, providing £50 million to develop and scale up holistic family support and investing around £1 billion every year in high quality early learning and childcare, ensuring Scotland delivers the most generous funded childcare offer in the UK.
“The economic modelling published today estimates that the actions we’re taking will mean the relative and absolute child poverty rates will be 10 and 7 percentage points lower than they would have otherwise been.
That’s 100,000 children kept out of relative poverty and 70,000 kept out of absolute poverty next year. These are the lives of children across Scotland, in every single community, being improved by the action we are taking.
“While we all know the challenging financial situation Scotland faces, the Scottish Budget continues to prioritise tackling and reducing child poverty. Against a backdrop of the UK Government’s two-child limit and continued austerity, we are taking real action to lift children out of poverty and improve their chances in life.
“We know that the UK Government could lift a further 40,000 children out of poverty in Scotland this year if they made key changes to Universal Credit. That includes introducing an Essential’s Guarantee and scrapping the two child limit.
“Every child in Scotland deserves a life free of poverty and I will continue to do everything in my power to make that a reality.”
Retail trade union Usdaw has a delegation of members, reps and officials attending the annual Scottish Labour Conference in Glasgow, Friday 16 to Sunday 18 February. The union is part of a composite on child poverty.
Tracy Gilbert, Usdaw Regional Secretary for Scotland says:“One in four children in Scotland are living in poverty, which is inextricably linked to in-work poverty. It is appalling that Scotland’s Children’s Commissioner has deemed the SNP Government to have ‘absolutely failed’ to deliver for young people.
“While we welcome the Scottish Child Payment, the rising cost of living means the payment is falling in value and more direct support is needed to meet child poverty targets. The lack of appropriate childcare, and the childcare costs families continue to face, lock children in poverty despite improvements in funded childcare in recent years.
“Research shows that families with children make up around half of the families experiencing in-work poverty across Scotland. So, tackling the issue of in-work poverty is critical to ensuring that every child has the best possible start in life and the opportunity to thrive.”
The composite motion to conference calls on Scottish Labour to:
· Prioritise the eradication of child poverty.
· Urgently work with trade unions and the Child Poverty Commission to bring forward a comprehensive plan to eradicate child poverty.
· Increase cash payments to families through mechanisms such as raising the minimum wage.
· Provide safe and affordable housing.
· Address the lack of appropriate, affordable and accessible childcare that families face to help break the cycle of child poverty.
· Introduce meaningful support to address the most urgent priorities facing working people as a result of the cost of living crisis.
